Net Income Divided by Net Sales Is the Formula for Which

question 27

Multiple Choice

Net income divided by net sales is the formula for which of these analytical measures?

• A)Return on assets
• B)Return on equity
• C)Earnings per share
• D)Net margin

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Definitions:

Accumulated Depreciation

The cumulative amount of depreciation cost that has been applied to a tangible asset from the time it was initially utilized.

Legal Fees

Expenses paid or incurred for legal services, which businesses may incur in the course of operations or dispute resolution.

Equipment Account

An account on a company's balance sheet that reports the value of equipment owned by the company.

Routine Repairs

Regular maintenance activities required to maintain the functionality and efficiency of equipment or facilities.